The value of Glastonbury leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Glastonbury lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing lengthy correspondence with the freeholder of her first floor apartment in Glastonbury, Rhiannon started the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was finalised in November 2006. The landlord’s fees were negotiated to less than 600 pounds.
In 2012 we were contacted by Mr and Mrs. S Richardson who, having completed a basement flat in Glastonbury in April 2010. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Identical premises in Glastonbury with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 24 March 2084. Having 58 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.
Last Christmas we were contacted by Mrs N Bailey , who purchased a recently refurbished apartment in Glastonbury in September 2007. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative flats in Glastonbury with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease lapsed on 28 August 2104. Given that there were 78 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.